I'm addressing both the question and the comments, but possibly this question should be closed. First let's be clear what we mean by a model of set theory. A model is a set $M$ (or perhaps a class) with a binary relation $E$. $(M,E)$ satisfies Foundation if for every $x$ in $M$, there is an $E$-minimal $y$ in $M$ such that $y E x$. $M$ is well founded if for every $x \subseteq M$, there is an $E$-minimal $y$ in $M$ such that $y$ is in $x$. If $E$ is $\in$, then $M$ is transitive if every element of $M$ is a subset of $M$. Well foundedness is implicit in transitivity.
The problem is that your model need not be well founded. The Axiom of Foundation only implies that the model of set theory you are working with does not have an element witnessing that it is ill founded. But certainly such a witness can exist outside. Henken's construction The Henkin Construction essentially never will result in a well founded model. A simpler example is given by a non standard model of PA. The model satisfies the induction scheme (which is the analog here of Foundation) but any well founded model of PA is isomorphic to the standard model.
Furthermore, any well founded model $(M,E)$ of ZFC is isomorphic to a transitive set (or class) with the membership relation. This is the Mostowski collapse at work. So transitivity is not the issue here. The failure of finiteness to be absolute is tied up in the ill foundedness of the model in question.